How do I avoid fees on Wise?

Navigating Wise Fees: A Sender-Focused Strategy for Cost-Effective Transfers

Wise, formerly known as TransferWise, has become a popular choice for international money transfers due to its transparent fees and generally favorable exchange rates. However, even with its commitment to lower costs, receiving money through Wise can sometimes incur unexpected charges. The good news is, you can often minimize, or even completely avoid, these fees by focusing on the sender of the money.

The key to a smooth and cost-effective transaction lies in ensuring the sender uses the correct Wise method and details for their specific currency. By being proactive and providing them with precise instructions, you can significantly reduce the chances of unwanted surprises.

Here’s a breakdown of how to sidestep unnecessary fees when receiving money through Wise, centered on empowering the sender:

1. Provide Detailed Account Information Specific to the Currency:

This is the most crucial step. Avoid the temptation of simply sending your general bank account details. Wise is designed to work optimally when the sender initiates the transfer directly into your designated Wise account for that currency.

• Access Your Wise Account: Log into your Wise account and navigate to the currency for which you want to receive funds (e.g., USD, EUR, GBP).
• “Get Local Account Details”: Look for the option to “Get local account details” (or similar phrasing depending on the interface update). This will reveal specific information tailored to that currency, which may include:
  • Account number
  • Routing number (for USD)
  • IBAN (for EUR)
  • Sort code (for GBP)
  • Account holder name
  • Address
• Share This Information Carefully: Provide these exact details to the sender. Double-check for accuracy before they initiate the transfer. Explain that using these details allows Wise to process the transfer as a local transaction in their currency, minimizing intermediary bank fees.

2. Communicate Clearly with the Sender:

Don’t just send the account details and hope for the best. Explain to the sender why using these specific details is important. Emphasize the potential for lower fees and a faster transfer time.

• Explain the Wise System: Briefly explain that Wise operates by creating local accounts in different countries. This allows them to avoid expensive international wire transfers by matching senders and receivers within the same currency zones.
• Encourage Questions: Let the sender know they can reach out if they have any questions or need clarification. This proactive approach can prevent costly mistakes.

3. Understand Potential Fee Sources (and How to Avoid Them):

While focusing on the sender’s end is paramount, knowing where fees might arise is helpful.

• Intermediary Bank Fees: These are often the most frustrating. They can occur when the sender initiates a transfer that goes through an intermediary bank before reaching Wise. Using the Wise-generated local account details drastically reduces the likelihood of these fees.
• Conversion Fees: Wise generally offers competitive exchange rates with transparent conversion fees. However, confirm the exchange rate with the sender beforehand to ensure everyone is aware of the cost.
• Fees for Receiving Specific Amounts: Wise may occasionally have minimum or maximum thresholds for fee-free transfers. Check their current policies regarding these limits, especially if you’re expecting a large sum.

4. Keep an Eye on Wise Updates:

Wise is constantly evolving and improving its services. Keep an eye on their updates and policy changes, which can sometimes affect fees and transfer procedures. Subscribe to their newsletter or regularly check their website for the latest information.

By focusing on providing the sender with the correct, currency-specific Wise account details and communicating clearly about the importance of using those details, you can significantly improve the efficiency and transparency of your international money transfers and avoid unexpected fees. Taking this proactive approach will ensure you receive the full amount you’re expecting, allowing you to enjoy the benefits of Wise’s platform with greater confidence.